Document background
The Contract of Indemnity and Guarantee is a crucial legal instrument in Belgian commercial and financial transactions, used when one party needs to provide security for another's obligations. This document type is particularly relevant in scenarios involving corporate groups, financial facilities, construction projects, or commercial transactions where additional security is required. The contract must comply with specific requirements under the Belgian Civil Code, including express consent provisions and formal documentation requirements. It typically details the scope of guaranteed obligations, enforcement mechanisms, and preservation of rights, while also incorporating relevant EU regulations where applicable. The document's structure ensures it functions both as a guarantee (accessory obligation) and an indemnity (primary obligation), providing comprehensive protection for the beneficiary while clearly defining the guarantor's obligations and limits.
